Jonathon Owns a One-Third Interest in a Liquidating Partnership

question 125

Multiple Choice

Jonathon owns a one-third interest in a liquidating partnership. Immediately before the liquidation, his basis in the partnership interest is $60,000. The partnership distributes cash of $32,000 and two parcels of land (each with a fair market value of $10,000) . Parcel A has a basis of $2,000 to the partnership and Parcel B has a basis of $6,000. Jonathon's basis in the two parcels of land is:

• A) Parcel A, $2,000; Parcel B, $6,000.
• B) Parcel A, $7,000; Parcel B, $21,000.
• C) Parcel A, $10,000; Parcel B, $10,000.
• D) Parcel A, $14,000; Parcel B, $14,000.
• E) Parcel A, $15,000; Parcel B, $45,000.

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